Coca-Cola plans to cut 1,200 jobs as it deepens its cost-cutting initiatives in response to sluggish soda sales. The job cuts account for about one percent of the soda giant’s 100,300 employees.
The soda giant said it would trim the jobs beginning in the second half of 2017 and carrying into 2018 as it tries to become “faster and more agile”.
While the job cuts “will clearly be difficult for those impacted, these changes are critical for us to create an environment where we can accelerate growth and become the consumer-centric, total beverage company we need to be in a fast-changing world,” Incoming Chief Executive James Quincey said in a statement.
Overall, the soda manufacturer said it would expand the company’s current cost-savings program by US $800 million to US $3.8 billion.
The company is offloading much of its low-margin bottling business to reduce expenses, but costs associated with the refranchising have been higher than expected, weighing on profit.